The Wall Street Journal is now reporting that Microsoft and Yahoo are holding talks to try and avoid the promised proxy battle/hostile takeover effort that is certain to be wearying for both sides. According to the paper, “Talks between Microsoft Corp. and Yahoo Inc. intensified Friday as the two sides explored the possibility of a last-ditch friendly deal, according to people familiar with the matter.”

Apparently price remains the stumbling block, with Microsoft willing to offer up to $33 per Yahoo share, while Yahoo wants something more like $35 to $37. That doesn’t seem like much of a gulf, but represents additional billions in the larger context of the totality of Yahoo shares.

We’re all waiting for the other shoe, but it appears it will still be awhile longer before it drops.

Related Topics: Microsoft & Yahoo Search Deal

About The Author: Greg Sterling is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling. See more articles by Greg Sterling